Veris Residential, Inc. · NYSE:VRE
Veris Residential — Mack-Cali Realty — NAREIT Conference 2021
22 slides from Veris Residential's conference presentation, Jun 8, 2021
Slide 1: Mack-Cali NAREIT Conference June 8, 2021
Slide 2: Forward-looking statements
2 Statements made in this presentation may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “potential,” “projected,” “should,” “expect,”
Slide 3: Key highlights: asset sales, waterfront leasing, occupancy, ESG
3 a. Completed $547 million of asset sales YTD and retired $575 million of bonds b. Pricing realized in-line with pre- Covid expectations c. 1.1 million sq ft of remaining suburban sales in process a. Leveraging Harborside as a complete campus offering b. Generating traffic with proactive leasing pr
Slide 4: Suburban Office Portfolio Sale Substantially Complete
Suburban Office Portfolio Sale Substantially Complete
Slide 5: Annualized NOI by portfolio and stabilization
5 Note: The annualized Q1 2021 corporate NOI includes income (expense) attributed to entities not directly associated with assets in the portfolio. See Information About Net Operating Income (NOI) on p. 21. (1) Represents annualized Q1 2021 Total Portfolio NOI assuming all assets held as constructio
Slide 6: Debt maturity schedule
6 $60,253 $50,395 $183,863 $250,000 $150,000 $3,848 $147,998 $308,000 $408,000 $206,000 $293,021 $72,000 $150,000 $150,000 $100,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Construction Office Secured Residentia
Slide 7: ony
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Slide 8: Harborside campus offering
8 • High-quality and unique office space attractive to different types of tenants • Strong sense of community and active 24/7 lifestyle with excellent residential options • Unique opportunity for user-control • Consistent level of first-class service • Desirable location with waterfront views and pr
Slide 9: Revitalize Waterfront Leasing
9 : Revitalize Waterfront Leasing • Opportunity for employees to live adjacent to where they work • Incredible connectivity and easy access to Midtown and Downtown • Outstanding commutation options including PATH train, light rail, NJ transit rail, ferry, car, bike and walking • Comprehensive space
Slide 10: Waterfront summer programming
10 • Summer programming designed to reinforce connectivity of office and multifamily portfolios to establish “Harbor-side District” • Created seasonal pedestrian-only Hudson Green activated with ongoing exhibitions, partnerships, and community-focused programming • Highlights include weekly children
Slide 11: Maximizing value from Class A residential platform
Maximizing value from Class A residential platform
Slide 12: Class A multifamily platform
12 • Class A multifamily platform • 5,825 units • Locations across New Jersey, Boston Metropolitan area, suburban New York and Washington DC • Resort-style amenities and energized, social spaces including clubrooms, fitness centers, and rooftop swimming pools • Committed to promoting the wellbeing o
Slide 13: Multifamily Occupancy (Same Store)
13 Multifamily Occupancy (Same Store) 94.5% 88.3% 86.2% 87.3% 89.5% 90.5% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 May-31 '21 ▪ Continued growth in leasing traffic and capture rates across all submarkets through April and May ▪ Tapering of concessions across select assets The BLVD Collection 145 Fron
Slide 14: Current developments are leasing up ahead of schedule
14 Current developments are leasing up ahead of schedule The Capstone West New York, NJ Note: Dollars in millions. (1) As of March 31, 2021 (2) As of June 6, 2021 Initial Occupancy Q1 2020 Jan-2021 Feb-2021 May-2021 Q1 2022 Project Stabilization Q4 2020 Q4 2021 Q1 2022 Q2 2022 Q3 2023 Total Cost (1)
Slide 15: Multifamily peer comparison
15 Note: Comparable data is as of 9/9/2020. Sources include Green Street Advisors and CBRE (1) NAV metrics reflect last published RRT NAV adjusted to reflect portfolio sales as of YE 2020. EV per unit premium due to methodology discrepancy. (2) The Company’s lower capex spend is due to the newer age
Slide 16: Advancing Operational Efficiencies and Commitment to ESG Initiatives
Advancing Operational Efficiencies and Commitment to ESG Initiatives
Slide 17: Sustainable communities and ESG
17 Mack-Cali strives to create sustainable communities, placing focus on health & well-being of its employees, tenants and residents while improving the environment. One of Mack-Cali’s most critical objectives is to become a more inclusive and diverse company that reflects the backgrounds of the cus
Slide 18: The Upton
18 The Upton
Slide 19: Suburban office sales to date and remaining
19 • To date the Company has sold 1.9 million SF of Suburban Office for $547 million • Sales have been completed at or near pre-pandemic valuations • Only 1.1 MSF remain from the original Suburban Office disposition program • 3 remaining transactions • Remaining sales to close by YE 2021 SF Gross Sa
Slide 20: Rent analysis: Harborside vs Manhattan
20 : 1. Analysis assumes a base rent of $43 per RSF with 2.25% fixed annual increases for Harborside, base rent of $57 per RSF for Downtown Manhattan with a $5 per RSF increase after 5 years, and base rent of $77 per RSF for Midtown Manhattan, with a $5 per RSF increase after 5 years. 2. Analysis as
Slide 21: Definitions
21 Average Revenue Per Home: Calculated as total apartment revenue for the quarter divided by the average percent occupied for the quarter, divided by the number of apartments and divided by three. Projected Stabilized Yield: Represents Projected Stabilized Residential NOI divided by Total Costs. Se
Slide 22: Information about Net Operating Income (NOI)
NOI represents total revenues less total operating expenses, as reconciled to net income above. The Company considers NOI to be a meaningful non-GAAP financial measure for making decisions and assessing unlevered performance of its property types and markets, as it relates to total return on assets,